Solved

Which of the Following Is a Drawback of the Maximax

Question 67

Multiple Choice

Which of the following is a drawback of the maximax criterion?


A) It ignores the payoffs associated with the "high demand" state of nature.
B) It ignores the payoffs associated with the "low demand" state of nature.
C) It is not a good method to use when the states of nature are not equally probable.
D) It ignores the maximum payoff that could be realized if the decision maker were a risk taker.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions